China's Central Bank Warns "Bitcoin Will Die" - Here's How

On the heels of a weekend full of threats and promises from governments, bankers, and the mainstream media, Bitcoin was lambasted once again overnight, this time by The People's Bank of China.

For a brief 6 months or so, China was the dominant region for Bitcoin in the world, but then  - as capital flows accelerated - the government and central bank began to 'crackdown' on crypto, first by banning ICOs and then shutting down local exchanges. Volume disappeared...

Looking back at the crackdowns, QZ reports that Pan Gongsheng, a deputy governor of the People’s Bank of China, believes Beijing made the right decisions.

"If we had not shut down bitcoin exchanges and cracked down on ICOs several months ago, if China still accounted for more than 80% of the world’s bitcoin trading and ICO fundraising, everyone, what would happen today? Thinking of this question makes me scared."

QZ further notes that Pan went on to share a recent column by economist Éric Pichet in the French newspaper La Tribune (link in French). In it, Pichet, a professor at the Kedge Business School in France, makes a familiar argument that bitcoin is a bubble waiting to burst, just like the tulip mania in the 1600s and the Internet bubble of 2000.

He predicts that bitcoin will die of a grand theft, a hack into the blockchain technology behind the cryptocurrency (which actually is unlikely), or a collective ban by global governments.

Pan cited lines from Pichet to wrap up his talk:

As Keynes has taught us, “the market can remain irrational longer than you can remain solvent.”

 

There is only one thing left to do: Sit by the river bank and see bitcoin’s body pass by one day.

But for now, while his comments could have taken the shine of overnight trading, Bitcoin is bid again this morning...

Comments

macholatte Pinto Currency Mon, 12/04/2017 - 18:27 Permalink

 Stepping back, Bitfinex, incorporated in the British Virgin Isles, has close ties to Tether, the Hong Kong-based issuer of a dollar-pegged cryptocurrency. While Tether says it fully backs its eponymous tokens, Bitfinex'ed has accused the company of issuing more tethers than it can redeem and using them to fund margin trading on Bitfinex, thereby artificially pumping up the price of bitcoin.Bitfinex vs. Bitfinex'ed?https://www.coindesk.com/bitfinex-vs-bitfinexed-exchange-hires-law-firm…

In reply to by Pinto Currency

fx macholatte Mon, 12/04/2017 - 20:57 Permalink

Sounds pretty scary, maybe the Chinaman knows something more about bitfinex. That said, The irony, imho, will be that bringing BTC fully "mainstream" by opening futures trading , will quickly destroy bitcoin. The power of heavily leveregaed pumps and dumps will overwhelm BTC. RIP, but other cryptos may still make it, ultimately.Poor John MCAfee can kiss his dick goodbye already...

In reply to by macholatte

Buckaroo Banzai Pinto Currency Mon, 12/04/2017 - 18:36 Permalink

"You have got to get familiar with quantum computing, and there is loads of stuff on the net about it. But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer."Uh, okay. Then why hasn't it happened yet, and what are they waiting for?

In reply to by Pinto Currency

Pop3y3too runningman18 Mon, 12/04/2017 - 20:58 Permalink

Last week's Big Bang Theory had an episode about Bitcoin and how the gang were all going to be rich with bitcoin they'd mined years ago. Spoiler - through a series of errors they lost the bitcoin. My sister asked me about bitcoin the week before last - reminds me of shoe shine boys giving stock market advice... so "the masses" are finally getting the word.  Shouldn't be long now. and the bankster blockchain will be Ethereum. Note the banks that are members of the Ethereum Alliance. ethereumalliance.org

In reply to by runningman18

Endgame Napoleon runningman18 Mon, 12/04/2017 - 23:08 Permalink

What is going to happen to all the Big Bank real estate? They keep building those banks, not because of the ample number of service sector jobs that they are generating. Are they going to put a bunch of cubicles in there for blockchain programmers? I am all for the building. When I owned a small shop, they were some of my best customers, but that was over a decade ago now. Their building spree no longer makes much sense.

In reply to by runningman18

agNau Buckaroo Banzai Mon, 12/04/2017 - 22:18 Permalink

We are waiting for the market to judge the most efficient time for the slaying.
Run up, fallback, buy. Repeat.
Sound familiar?
I am looking for two things:
A different pattern where instead of one fall back we get two hard falls with no run up to new high separating them.
And.....
My shoeshine boy to recommend buying bitcoin.

*The second being the most important.

In reply to by Buckaroo Banzai

Endgame Napoleon Mine Is Bigger Mon, 12/04/2017 - 23:14 Permalink

China is massive and mostly rural. Their farmers supposedly have great comparative life expectancy, likely due to their simpler social roles and heartier lifestyle. The whole of China is not likely to fall. The middle class created, in part, by American economic elites who moved manufacturing out of their own country and out of Mexico to reap higher profits via low-cost Chinese labor might change shape if their economy really has a lot of unsecured loans. They will also face mass underemployment from automation, as the US is already experiencing.

In reply to by Mine Is Bigger

HRClinton serotonindumptruck Mon, 12/04/2017 - 18:35 Permalink

The forking Chinks are just scared of 2 things:1. Capital Flight out of China2. PM oppression ending, ending their sales special on PM bullion. FORK YOU, CHINA!We the BTC hodlers are going to:A. Use your CB casino coins to drive up the CC price.B. Use CC/BTC to trade it for non-fiat assets: PM bullion, and sometimes Gems. This amounts to an "Exchange In Kind": Asset for an Asset, during which transaction no CB fiats are involved. "No animals or fiats were hurt"C. CCs and PMs will amount to leaving your Central Planning Fiat Economy, to join the growing Parallel Economy that is decentralized and private. We are "Going Gault. Financial Gault."We're gonna keep taking cheap PM and starve the Beast -- denying it the VoM, etc. Be afraid. Be very afraid. LOL/ROR

In reply to by serotonindumptruck

WTFRLY Mon, 12/04/2017 - 17:55 Permalink

They are gonna j00 it. It's already in the cards. It will be Mr Robot in reverse as society melts the fuck down. Then they can pull the trigger on everything.